Credit & Collections

In order to comply with VAT regulations, for any sale of more than R50, you have to issue a tax invoice, with the word "tax invoice" printed on it. This is the most important document in the VAT system. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply as well as the parties to the transaction. This includes the value of the goods/services excluding VAT, and the VAT amount (calculated at 14% of the above amount), among others.

Having systems in place for all aspects of your business operations not only ensures that you're always on top of things, but also that you appear professional and business-like to your customers. This is of particular importance when collecting on invoices, a vital element of maintaining your cash flow. This article provides you with tips on how to implement an effective collections system.

At one time or another, you may have to apply for a loan or overdraft to expand your business, buy equipment or finance some other aspect of your operations. This is when having a good credit history becomes very important. Establishing and maintaining a good credit record takes time and can be challenging during tough financial times. This is why you should not obtain credit for unnecessary expenses. This article looks at how to keep your credit record clean.

When you mention the “M” word these days you can see many SME owners tensing up – the body language immediately gives you feedback that here is an area many wish a magic fairy would resolve. So this article is all about helping you to take responsibility for a core factor in the success of your business. Here are some ideas you can explore on how you can become more professional in the collection of money due to you.

The National Credit Regulator (NCR) was established as the regulator under the National Credit Act No. 34 of 2005 (The Act) and is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring the enforcement of the Act. The Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.

Personal visits, telephone calls, and letters are the three most common collection approaches that small business owners use to collect past due accounts. Since many small business owners simply don't have the time or opportunity for personal visits or telephone calls, a letter is often the method of choice. This document provides you with some examples of credit recovery communication to help you manage the relationship with your clients.

As a small business owner, it is important to know all about credit. You need to know how to apply for loans and how to manage them. Almost everyone will find themselves in a position of needing a little extra help at some point in their lives. There are various types of credit that you should be aware of in order to be able to weigh up what is best for you your particular situation. The first thing to know is the difference between secured credit and unsecured credit.